Critical minerals could be worth more than $100 billion annually by 2050 to the West Australian economy, according to the latest Bankwest Curtin Economics Centre (BCEC) report on the mining and resources sector.<\/p>\n
The \u2018WA\u2019s Resources Sector in Transition\u2019<\/a> report found the resources sector continues to underpin the state\u2019s economy, contributing $200 billion each year and driving jobs, exports and government revenue.<\/p>\n The report said conditions that have delivered decades of prosperity are rapidly shifting, with decarbonisation, technological change and intensifying global competition reshaping resource markets.<\/p>\n According to the report, those factors meant the next phase of growth will be driven by value not volume.<\/p>\n Report co-author and BCEC director Professor Alan Duncan said Western Australia was entering a pivotal period that required a deliberate shift towards higher-value industries, processing and innovation to fully capture the opportunities available.<\/p>\n \u201cFor decades, our prosperity has been built on extracting and exporting resources,\u201d Professor Duncan said.<\/p>\n \u201cThat model has served Western Australia incredibly well, but the next chapter will look different.<\/p>\n \u201cThe big question is not whether we have the resources. It\u2019s whether we can create more jobs, more industries and more long-term value from them before they leave our shores.\u201d<\/p>\n The report\u2019s authors said critical minerals exploration and processing had a crucial role to play in helping to continue the state\u2019s prosperity.<\/p>\n While iron ore remains a cornerstone of WA\u2019s economy, generating around $126 billion in economic output and accounting for more than 80 per cent of WA\u2019s royalty revenue, the report said it will account for a declining share in output over time.<\/p>\n At the same time, demand for critical minerals needed for batteries, electric vehicles, renewable energy and emerging technologies is expected to grow strongly over coming decades.<\/p>\n Report co-author Dr Silvia Salazar said WA had a rare opportunity to build on its existing strengths, if it acts now.<\/p>\n Under future scenarios modelled in the report, critical minerals, processing and other value-added industries could generate more than $100 billion a year by 2050 \u2013 a fivefold increase from around $20 billion today, she said.<\/p>\n \u201cWe have the minerals, the expertise and the global reputation to be a leader in the industries emerging from the global energy transition,\u201d Dr Salazar said.<\/p>\n \u201cBut success isn\u2019t guaranteed.<\/p>\n \u201cOther countries are competing hard for the same opportunities, and if we want to capture a larger share of global demand we will need the right energy, infrastructure, skills and investment settings in place.\u201d<\/p>\n \u201cOne of the key lessons from the report is that policy settings matter,\u201d Professor Duncan said.<\/p>\n \u201cThe difference between one fiscal arrangement and another can amount to billions of dollars over the life of a project.<\/p>\n \u201cThe challenge is making sure today\u2019s mining wealth becomes tomorrow\u2019s industries, jobs and fiscal value.<\/p>\n \u201cEvery tonne we extract should help build a stronger future for Western Australia.\u201d<\/p>\n Read more: Rich groundwork for Australia\u2019s critical minerals future<\/a><\/p>\n